Indian Tribes' Monopoly on Gaming in California Upheld by Appellate Court.

Byline: Denny Walsh

Dec. 23--Because of Congress' "unique and historical" obligation to preserve the independence of American Indians, it was not unconstitutional for California to grant a monopoly on casino-type gambling to Indian tribes, a federal appellate court ruled Monday.

The unanimous decision of a three-judge panel of the 9th U.S. Circuit Court of Appeals rejects a challenge to state Proposition 1A by card clubs and charities.

The 2000 initiative is grounded in the federal Indian Gaming Regulatory Act and amended the state's constitution so the governor may negotiate compacts with tribes for slot machines, lottery games, and banking and percentage card games on Indian lands. Prior to its passage, California banned all such gaming.

There are 62 state-tribal compacts allowing such gaming. The compacting process gives the state civil regulatory authority over the casinos that it otherwise would lack. In 1987, the U.S. Supreme Court turned back California's bid to enforce its penal code against tribal bingo halls.

The card clubs and charities complain that the ballot initiative and compacts give the tribes an unfair competitive advantage, in violation of IGRA and their equal-protection rights under the 14th Amendment.

In finding for the Indians, the 9th Circuit, the highest court in the western states, affirmed a ruling last year by U.S. District Judge David F. Levi of Sacramento.